3 Detrimental Mistakes Sellers Make When Pricing Their Home

Posted by Florida Realty Marketplace on Wednesday, September 18th, 2019 at 8:00am

There are lots of ways to make a mistake in selling a home. It’s a complex project and not one to be done by just anyone.

Of all the homes for sale in Davenport, FL, it’s inevitable that some homeowners have tried to price their own home. Here are some of the biggest mistakes, so you can avoid them when it’s time to sell your home.

 

 

1. Not getting professional advice

There are lots of ways to sell a house, but working with an agent ensures the smoothest process. However, today, some sellers are choosing For Sale by Owner (FSBO) or working an online “iBuyers” because they think it’ll get them the best price.

FSBO is something a few folks believe they can do to save some money but they’re forced to answer questions that only professionals can truly know. Questions like, what is the right price to list it at? Is the assessed value a fair number? How about all the online estimates? Is that accurate?

Some choose the “iBuyer” route so they avoid the hassle of listing, showings, and dealing with the public. But this option comes with its own set of challenges. They’re left wondering if the price they’re quoted is a fair market price, or if the repairs they made are accounted for. They also have to figure out what sort of fees they charge.

The bottom line is, pricing a home for sale is complex, and while there is a ton of information out there, it’s hard to sort through it all to find what’s relevant to your particular home.

Professional real estate agents do this every day and know what’s relevant. It all starts with the comparable properties (comps) and then adjusting for condition, location, and other differences.

2. Pricing the home too high

Once you have an idea of the price that buyers are willing to pay for your home, you must decide on the listing price. Some sellers believe it’s wise to leave room for negotiation, but that’s not always the best approach.
There is data available to compare the sales price to the list price in your market. This difference is measured in percentages. For example, if a ratio is listed at 97%, that means the house sold for at least 97% of the list price.

If you leave more room than that, you’re likely over the price that most buyers would consider. Remember, buyers have access to a lot of data today, too. They can see how your competition is listing and their pictures, and compare online for the best value.

It’s likely that they also have an agent who has access to deeper, more significant data. Their agent will educate them on whether they should come see your home or not.

One thing professional agents do is measure the results of your activity. If you have a new listing with no showings in the first 10 days, you’re likely overpriced at least 10% or more.

If you have that same listing on the market with lots of showings but no offers inside of the first 30 days, the price is likely between 5-10% too high. Making adjustments to the price quickly is critical to getting a contract on your home.

3. Picking the wrong agent

There are plenty of agents who will list your home. What are the biggest differences and how do you pick the right one for you?

Most sellers find their agents by a referral from someone they trust, like a coworker, friend, or family member who knows someone.

If you don’t have a referral, it’s best to interview a few agents, see how they market the properties they list, and what price they think it can sell for.

It’s also important to look at their current listings and see the quality of the pictures. Were they taken on a cell phone or did they hire a pro to get the best view of the house? It matters in the online age of listing properties.

It’s not always best to choose the agent with the highest price either. Some agents will tell you what you want to hear just to get the listing. If the agents spend more time talking about themselves and less listening to your needs, you might want to keep looking.

The bottom line is to get professional advice, price it to the market, and pick the right agent for you. Your house will sell in the least number of days and for the most money if you do this. This is especially true if you work with a professional at Florida Realty Marketplace. Contact us today to speak to an agent.

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